Lawyers and particularly the one working for legal firms in London must be aware of the company laws. When it comes to consider a business, it is only a string of transactions, however, a company is a lot more than that. It is not just about a deal or a well thought and executed contract. Instead it is a unique entity. And it has a large number of people who may be investing into it and are using its products and services, hence it is operating as a much bigger level than a mere transaction or a contract.
In a bid to ensure the smooth working of a business unit, there were certain laws created to maintain the transparency and accountability towards its shareholders and was known as Company Laws. It provides an overview of the process in which a company must operate as a legal entity (once it’s formed) and how it must be managed.
According to the Company law, there are lots of features of a business that are important to understand the importance of Company’s Law. Company have a continuous presence regardless of the existence of its members. That is a company cease to exist and work until it is legally wound up. Hence, even if all the members of a company get deceased or leave it, the company will bound to exist and is not restricted to its directors or its members. Only way a company can cease to exist is by officially winding it up. Even if the company is broke or is not performing or doing any kind of business transactions, it is still in existence until an order to wind it up is passed.
Another major feature of a business is that it is treated as a distinctive and discrete legal entity which have the authority to sue others on its own and others can prosecute the company as well. In case company thinks appropriate, it can sue a wrong doer and can be sued for any form of civil crimes as a legal entity. This can be inclusive of, indecorous conduct of business, or implementation of a special contract, etc. In such scenarios, the company will be held accountable for its doings and penalized consequently. However, any criminal processed do not infer over the company as a criminal procedure usually need a guilty mind and this cannot be appropriate in case of a company.
The primary role of legal firms in London are supposed to advice the firm on different aspects and the fundamental aspect of this act is based on core of Company's Laws. They must make a range of decisions and help Management take their decisions conveying them the legal insinuations of it. There are various contracts being signed based on these decisions and these contracts are legally binding. Hence, a corporate lawyer or law firm must keep in mind every aspect of Company Law to ensure that it keeps the company out of any sort of risks by signing such contracts or at least make them mindful of the legal allegations of their act as a company.
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